Japan Steel Works Ltd., which makes reactor parts for Areva SA, Toshiba Corp. and other companies, more than doubled its forecast for China's nuclear plant construction because of stimulus spending and environmental pressure.
China plans to construct about 20 reactors in the five-year period ending in 2010 and 132 units thereafter, compared with a company estimate last year for a total of 60 reactors, President Ikuo Sato said in an interview. Japan Steel Works has the only plant that makes the central part of a large-size nuclear reactor's containment vessel in a single piece, reducing radiation risk.
China, the world's largest energy consumer after the U.S., is increasing spending on atomic energy as part of a 4 trillion yuan economic stimulus plan and as it curbs greenhouse gas emissions. Japan Steel Works is counting on the rising reactor demand as the global recession curbs sales to customers such as carmakers and electronics companies.